In today’s competitive legal landscape, law firms need to have a well-defined marketing strategy to stand out, achieve their objectives and, well, survive. Every law firm’s marketing strategy is designed to accomplish specific goals, such as increasing awareness, being considered by potential clients, getting hired, and ultimately having clients become ambassadors for the brand.
So how do successful firms use these objectives to assign accountability to campaigns and maximize ROI? Read on.
Setting clear and measurable objectives. Before diving into the specifics of measuring ROI, it’s crucial to set clear objectives. Objectives provide a framework for decision-making and help align marketing efforts with the firm’s overall goals. These objectives — increasing website traffic, generating leads, building brand awareness, etc. —can be specific to each campaign. By setting measurable goals, law firms can track their progress and evaluate campaign success.
Achieving awareness. In this post, we’ll focus primarily on one common objective for law firms: building brand awareness. (We get it — your objective is growing monthly case volume. But building your awareness is a massive part of getting your firm hired. Trust us.) This involves making potential clients aware of the firm’s services, expertise, and unique value propositions. To achieve this, law firms can employ various marketing tactics, including content marketing, social media campaigns, search engine optimization (SEO) and public relations.
Assigning accountability and measuring ROI. To ensure the effectiveness of a marketing campaign, it’s essential to assign accountability and, ultimately, measure the ROI. For law firms seeking awareness that will lead to new clients signed each month, accountability can be established by studying reach and brand lift. Reach refers to the number of people exposed to the firm’s marketing messages, while brand lift measures the increase in brand awareness and perception as a result of marketing efforts.
Measuring reach. Basically a numbers game, measuring reach involves tracking how many people have been exposed to the firm’s marketing activities. It can be done using various website analytic tools like Google Analytics, as well as other channels including social media analytics, email marketing metrics, and advertising platforms we use here at Roux Advertising. Social media platforms such as Facebook, Instagram and LinkedIn offer built-in analytics tools that can provide useful data on engagement, reach, impressions and follower growth. Law firms can then track metrics including likes, comments, shares, and click-through rates to gauge the effectiveness of their social media campaigns.
The above tools provide valuable insights into website traffic, user behavior, conversion rates, and other essential metrics that we use as leading indicators for all and case volume. For instance, conversion rates show the percentage of website visitors who take a desired action, such as filling out a contact form, subscribing to a newsletter or requesting a consultation. By tracking these rates, law firms can assess the effectiveness of their marketing campaigns in terms of generating leads and converting them into clients.
Measuring brand lift. Here’s where psychology comes in. Brand lift reveals the change in brand perception and awareness resulting from marketing activities. Law firms can measure brand lift through surveys, brand tracking studies, sentiment analysis, or direct communication. Surveys can help measure brand perception, client satisfaction and the effectiveness of specific marketing initiatives. Such feedback helps gauge the impact of marketing campaigns on potential clients’ perception of the firm and allows for adjustments to be made to enhance its brand identity.
Benchmarking. Law firms can benchmark their marketing performance against industry standards and competitors. Such comparison provides a broader perspective on the effectiveness of their campaigns and helps identify areas for improvement. Analyzing industry benchmarks helps firms set realistic goals, identify their strengths and weaknesses and make informed decisions about their marketing strategies. By evaluating the strategies and tactics used by successful competitors, firms can gain valuable insights and ideas for improving their own marketing efforts.
Comparing competitive marketing performance can also inspire firms to find ways to differentiate themselves. By identifying gaps or areas where competitors aren’t performing well, law firms can capitalize on those weak spots to position themselves as answers to the problem.
Identifying industry trends. Monitoring competitor marketing performance also allows law firms to stay informed about industry trends and developments. Other good sources of information include legal publications, industry reports, and news sources that cover the legal sector. Attending industry conferences, seminars and webinars can provide valuable networking opportunities and access to thought leaders in the field as well. Finally, law firms can leverage technology tools and data analytics to track and analyze trends in the legal market, including areas of high demand and emerging practice areas. By combining these methods, firms can stay ahead of the curve and capitalize on industry trends so they aren’t left behind in a market evolving at warp speed.
Evaluating ROI. Here’s where the rubber meets the road. By analyzing the cost of marketing initiatives and comparing it to the generated revenue or client acquisition, law firms can determine the ROI of their campaigns.
To determine ROI, law firms must first calculate the costs associated with their marketing initiatives. This includes advertising, content creation, website development, social media campaigns, and any other marketing expenses.
Next, revenue generated as a direct result of their marketing activities should be tracked. This can include revenue from new clients acquired through marketing efforts, upsells or cross-sells to existing clients, or increased referrals from marketing campaigns.
Once all costs and revenue are determined, ROI can be calculated using the formula: ROI = Profit / Cost of Investment x 100. For example, an investment with a profit of $100 and a cost of $100 would have an ROI of 1X, or 100%. Generally, the higher your ROI is, the better. If a firm has an ROI of just 1X, it essentially broke even. A higher number indicates that the marketing efforts have generated more revenue than the costs incurred. Shoot for an ROI of 5X or more.
Keep in mind that evaluating ROI needn’t be limited to short-term gains. It’s important to consider the long-term impact of marketing activities on brand reputation, client loyalty and overall business growth. Some marketing initiatives may not immediately pay off but can contribute to building a strong brand and a sustainable client base.
Summary. A well-designed marketing strategy is crucial for law firms to achieve their objectives and measure ROI effectively. Ultimately, a successful marketing program can help law firms not only achieve their objectives, but also establish a strong brand presence and generate long-term growth.
About Roux Advertising
Eric Morgan is President of Roux Advertising, a full-service agency that increases law firm case volume through distinctive marketing campaigns. Roux uses a strategy-first process that positions law firms uniquely in a marketplace and crafts the ad messaging, media buying and analytics to capture brand awareness and drive qualified calls. Need help developing your law firm’s marketing? Just visit us at www.rouxadvertising.com or give us a call at 504-561-5055.